This can often be the hardest part of the college process for both students and parents.
From the parents’ perspective, they have been probably telling their kids all their educational lives that if they work hard and do well in school that they can go on and do anything they want in the future. But then to turn around and tell the child once they’re approaching college age that Mom and Dad didn’t do enough to save money to fulfill that dream can be really hard.
And from the student’s perspective, they may not know the questions to ask, and if they do, does it end up meaning that they can’t go to the school of their dreams?
One thing is for sure. It’s a discussion that needs to happen, and well in advance of the college process. Ideally this means no later than the beginning of the child’s junior year in high school.
There are many things that need to be discussed:
- How does everybody feel about debt and how much they can handle? The only loan that the student can take out on their own is the federal direct loan which totals at this writing $27,000 over the four years of college. Where is the rest going to come from, and who’s going to pay for it?
- How much has been saved and how will it be used? Is that custodial account that Mom and Dad set up to hold all of Junior’s birthday money in play for college?
- Will the student be expected to work during the college year? Summertime?
- Pick a couple of schools that the student already has an interest in and go to their financial aid website page. Use the net price calculator on that page to get a good idea of what the total out-of-pocket cost is likely to be.
- Are there special incentives offered by your home state or surrounding state for education on certain professions? For example, loan forgiveness programs.
The bottom line is that you don’t want to have this discussion after the student has already fallen in love with the school of their dreams or have it in the office of the college admissions director. Being real about this upfront can make decision-making a whole lot better when it comes time to make a choice.
For more advice on the college funding process reach out to us at our website www.barnumforcollege.com.
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